Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

May 12, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:
Telephone:

Furukawa Co., Ltd.
Tokyo Stock Exchange5715
https://www.furukawakk.co.jp
Minoru Nakatogawa, President and Representative Director
Akira Mikage, General Manager, Accounting Department+81-3-6636-9502

Scheduled date of annual general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report:
Preparation of supplementary material on financial results:
Holding of financial results briefing:

June 29, 2023
June 30, 2023
June 29, 2023
Yes
Yes

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31,
2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Fiscal year ended

Millions of yen

March 31, 2023
March 31, 2022

214,190
199,097

Note: Comprehensive income

Operating profit% Millions of yen
7.6
24.7

9,031
7,734

Profit attributable toowners of parent

Ordinary profit% Millions of yen

16.8
38.3

9,348
8,996

% Millions of yen
3.9
32.8

6,211
6,477

For the fiscal year ended March 31, 2023:¥ 8,830 million[10.1%]For the fiscal year ended March 31, 2022:¥ 8,021 million[(56.7)%]

Basic earnings
per share

Diluted earnings
per share

Return on equity

Ratio of ordinary
profit to total assets%(4.1)(13.3)

Ratio of operating
profit to net sales

Fiscal year ended

Yen

Yen

%

%

%

March 31, 2023
March 31, 2022

161.97165.87

–
–

6.2
6.9

4.0
4.0

4.2
3.9

Reference: Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2023:
For the fiscal year ended March 31, 2022:¥ (860) million¥ 370 million

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

232,745
229,727

106,050
100,07544.2
42.3

2,700.87
2,505.01

March 31, 2023
March 31, 2022
Reference: Equity
As of March 31, 2023:¥ 102,946 million

As of March 31, 2022:¥ 97,253 million(3) Consolidated cash flows
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at end of period
Fiscal year ended
March 31, 2023

Millions of yen
6,148Millions of yen(1,617)

Millions of yen(5,934)

Millions of yen
13,606

March 31, 2022

8,768

(5,857)(6,568)

14,468

2. Cash dividends
Annual dividends per share

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(Forecast)

Total cash
dividends (Total)

Payout ratio(Consolidated)

Ratio of dividends
to net assets(Consolidated)

Yen

Millions of yen

%

%

50.00

50.00

1,941

30.1

2.0

–

50.00

50.00

1,905

30.9

1.9

–

50.00

50.00

First
quarter-end

Secondquarter-end

Thirdquarter-end

Fiscalyear-end

Yen

Yen

Yen

Yen

–

0.00

–

–

0.00

–

0.00

Total

31.8

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2024 (from April 1, 2023 toMarch 31, 2024)(Percentages indicate year-on-year changes.)
Net sales

Six months ending
September 30, 2023
Fiscal year ending
March 31, 2024

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basic earnings
per share

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

92,000(12.0)

3,700

9.7

3,700

(29.1)

2,300(33.3)

60.34

184,500(13.9)

9,200

1.9

9,200

(1.6)

6,000

(3.4)

157.41

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023

40,445,568 shares

As of March 31, 2022

40,445,568 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2023

2,329,563 shares

As of March 31, 2022

1,621,936 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2023

38,351,979 sharesFiscal year ended March 31, 2022

39,054,524 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March
31, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Fiscal year ended

Millions of yen

March 31, 2023
March 31, 2022

7,834
7,663

Operating profit

Ordinary profit% Millions of yen
2.2
(9.4)

Basic earnings
per share% Millions of yen

3,254
3,106

4.8
(26.8)

3,195
3,659

Profit% Millions of yen(12.7)(23.2)

3,073
2,951

%
4.1
(59.9)

Diluted earnings
per share

Fiscal year ended
March 31, 2023

Yen
80.14

Yen
–

March 31, 2022

75.58

–

(2) Non-consolidated financial position
Total assets

Net assets

Equity-to-asset ratio

Net assets per share

As ofMarch 31, 2023

Millions of yen
149,860

Millions of yen
65,727%43.9

Yen
1,724.42

March 31, 2022

148,144

64,96843.9

1,673.42

Reference: Equity
As of March 31, 2023:
As of March 31, 2022:¥ 65,727 million¥ 64,968 million

2. Forecast of non-consolidated financial results for the fiscal year ending March 31, 2024 (from April 1,
2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Ordinary profit

Basic earnings
per share

ProfitMillions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

Six months ending
September 30, 2023

4,800

(10.1)

2,300(22.7)

2,400(21.6)

2,200(23.0)

57.72

Fiscal year ending
March 31, 2024

7,200

(8.1)

2,300

(29.3)

2,200(31.2)

2,000(34.9)

52.47* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters(1) Caution concerning forward-looking statements
The forward-looking statements, including earnings outlook, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable by theCompany. The Company makes no warranty as to the achievability of the projections. Actual business andother results may differ substantially from the statements herein due to a number of factors. Please refer to 1.
Performance Overview, (1) Operating results, on page 2 of the attached material for the suppositions that form
the assumptions for earnings forecasts and cautions concerning the use thereof.
(2) Financial results briefing (for securities analysts and institutional investors)
The Company will hold a financial results briefing through livestreaming. Furthermore, the Company plans topost supplementary materials and a video of the results briefing on its website.

Furukawa Co., Ltd. (5715)

Attached Material
Index
1. Performance Overview ............................................................................................................................. 2(1) Operating results................................................................................................................................. 2(2) Financial position ............................................................................................................................... 6(3) Basic policy on distribution of profits and dividends for the fiscal year ended March 31, 2023
and the fiscal year ending March 31, 2024......................................................................................... 7
2. Basic Policy Regarding Selection of Accounting Standards..................................................................... 8
3. Consolidated Financial Statements and Significant Notes Thereto .......................................................... 9(1) Consolidated balance sheet ................................................................................................................ 9(2) Consolidated statement of income and consolidated statement of comprehensive income ............. 11
Consolidated statement of income.................................................................................................... 11
Consolidated statement of comprehensive income .......................................................................... 12(3) Consolidated statement of changes in equity ................................................................................... 13(4) Consolidated statement of cash flows .............................................................................................. 15(5) Notes to consolidated financial statements ....................................................................................... 16
Notes on going concern assumptions ............................................................................................... 16
Changes in accounting policies ........................................................................................................ 16
Segment information ........................................................................................................................ 16
Per share information ....................................................................................................................... 19
Material subsequent events .............................................................................................................. 19-1-

Furukawa Co., Ltd. (5715)

1. Performance Overview(1) Operating results(i) Overview(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales

Year-on-year change

199,097

214,190

15,093Operating profit

7,734

9,031

1,297

Ordinary profit

8,996

9,348

351

Profit attributable to owners of parent

6,477

6,211

(266)

During the fiscal year under review (April 1, 2022–March 31, 2023), the Japanese economy
showed signs of a turnaround, partly due to various government policies aimed at coexisting with
COVID-19. Non-manufacturing industries have continued to see profit growth as service
consumption and inbound demand recover. On the other hand, corporate earnings in the
manufacturing sector, which were strong in the first half of the year on the back of rising exports
stemming from recovery in overseas demand, have recently weakened, especially in the materials
sector. This is due to the yen’s depreciation and soaring raw material costs caused by higher
resource prices. Meanwhile, ongoing global monetary tightening and other factors have led to anincrease in downside risks, including slowdowns in overseas economies, particularly in Europe andthe United States. Accordingly, the business environment remains highly uncertain.
Under these economic conditions, the Furukawa Company Group posted consolidated net sales of¥214,190 million, an increase of ¥15,093 million year on year, and operating profit of ¥9,031
million, an increase of ¥1,297 million. In the Machinery business, the Industrial Machinery
segment and the Rock Drill Machinery segment both reported increases in sales and operating
profit, while the UNIC Machinery segment posted declines in sales and operating profit.
Nevertheless, the Machinery business as a whole enjoyed increases in both sales and operating
profit. In the Materials business, the Metals segment reported higher sales and operating profit, theElectronics segment lower sales and operating profit, and the Chemicals segment higher sales andlower operating profit. Accordingly, the Materials business as a whole posted an increase in sales
and a decrease in operating profit. Meanwhile, the Real Estate business reported a decrease in sales
and an increase in operating profit.
Within non-operating income, we posted foreign exchange gains of ¥1,462 million. As a result,ordinary profit amounted to ¥9,348 million, an increase of ¥351 million year on year. Within
extraordinary income, we posted a ¥362 million gain on sales of investment securities, and within
extraordinary expenses we posted a ¥470 million loss corresponding to progress of demolition
work on the Furukawa Osaka Building. Accordingly, profit attributable to owners of parent was¥6,211 million, a decrease of ¥266 million.
(ii) Results by business segment
Industrial Machinery(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Sales

17,723

17,943220

Operating profit

1,396

1,515

118

Year-on-year change

Sales in the Industrial Machinery segment amounted to ¥17,943 million, an increase of ¥220
million year on year, and operating profit was ¥1,515 million, an increase of ¥118 million. The
order backlog at year-end was higher than a year earlier due to orders received related to highway
bridges and stone crushing plants etc. Sales of pump plants, environmental products, and bridge
structures increased, while those of material machinery decreased. Regarding large-scale projects,
we recorded sales corresponding to progress, including of SICON® enclosed hanging belt
-2-

Furukawa Co., Ltd. (5715)

conveyors for the construction of the Shin-Kobotoke Tunnel on the Chuo Expressway, but overallsales declined due to the postponement of various projects.
Rock Drill Machinery(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Sales

30,91035,752

4,841

Operating profit

1,117

3,030

1,913

Year-on-year change

Sales in the Rock Drill Machinery segment amounted to ¥35,752 million, an increase of ¥4,841
million, and operating profit was ¥3,030 million, an increase of ¥1,913 million. In Japan, both sales
and profit increased thanks to various factors. These included growth in shipments of large modelsof hydraulic breakers, a shift to highly functional models of tunnel drill jumbos, an increase in
shipments of ancillary parts, and an increase in the number of custom-ordered machines serviced.
Overseas, we reported higher sales and profit, mainly due to increased shipments of hydraulicbreakers, hydraulic crawler drills, and ancillary parts to North America, as well as the positive
impact of the weak yen on revenue.
UNIC Machinery(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Year-on-year change

Sales

28,30527,961(343)

Operating profit

2,165

1,547

(617)

Sales in the UNIC Machinery segment amounted to ¥27,961 million, a decrease of ¥343 million,
and operating profit was ¥1,547 million, a decrease of ¥617 million. In Japan, we reported adecrease in sales mainly due to delays in crane installations stemming from delays and cutbacks intruck production. We also posted a decrease in profit due to a deteriorating cost ratio caused byprice hikes of steel and other raw materials. Overseas, we recorded increases in both sales andprofit thanks to higher shipments of mini-crawler cranes in Europe and the United States and UNIC
cranes in Southeast Asia, Oceania, and the Middle East.
[Machinery Business Total](Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Net sales

76,93881,658

4,719

Operating profit

4,679

6,093

1,414

Year-on-year change

Total sales of the Machinery business—consisting of the Industrial Machinery, Rock Drill
Machinery, and UNIC Machinery segments—amounted to ¥81,658 million, an increase of ¥4,719
million year on year, and operating profit was ¥6,093 million, an increase of ¥1,414 million.
Metals(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

102,995

111,424

8,429

940

1,276

336

Sales
Operating profit-3-

Year-on-year changeFurukawa Co., Ltd. (5715)

Sales in the Metals segment amounted to ¥111,424 million, an increase of ¥8,429 million, andoperating profit was ¥1,276 million, an increase of ¥336 million. The overseas market price ofelectrolytic copper started at US$10,247/ton but declined to US$7,000/ton on July 15 due toaccelerated monetary tightening measures by major central banks and China’s zero-COVID policy.
Subsequently, the price temporarily recovered to the US$9,400/ton range in January 2023,
supported by expectations of a recovery in demand in China and a slowdown in interest rate hikes
in the United States, but ended the fiscal year at US$8,935/ton. Despite a decline in the sales
volume of electrolytic copper, we achieved an increase in sales that was helped by a rise in thesales volume of electrolytic gold coupled with the weaker yen.
Electronics(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Year-on-year change

7,271

6,926

(345)

666

500

(165)

Sales
Operating profit

Sales in the Electronics segment amounted to ¥6,926 million, a decrease of ¥345 million, andoperating profit was ¥500 million, a decrease of ¥165 million. Sales of high-purity metallic arsenic
decreased as the market for compound semiconductors, a major application for that material,
entered an inventory adjustment phase both in Japan and overseas. Sales of aluminium nitride
ceramics increased due to firm demand for their application in thermal management components
and semiconductor manufacturing equipment components. We posted a decline in sales of coils due
to cutbacks in automobile production stemming from a shortage of semiconductors and otherfactors.
Chemicals(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

7,896

8,454

557

743

532

(210)

Sales
Operating profit

Year-on-year change

Sales in the Chemicals segment amounted to ¥8,454 million, an increase of ¥557 million, while
operating profit was ¥532 million, a decrease of ¥210 million. Sales of cupric oxide sales decreased
year on year due to a decline in demand related to PCs and lower sales volumes. This was despite
higher unit prices stemming mainly from rising copper prices. Meanwhile, sales of cuprous oxide
increased on the back of a recovery in demand for ship bottom paints, a major application for that
product, as well as higher unit prices, mainly due to increasing copper prices. On the other hand,segment operating profit declined due to higher manufacturing costs caused by soaring raw
material costs and other factors.
[Materials Business Total](Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

118,163

126,804

8,640

2,349

2,309

(40)

Net sales
Operating profit

Year-on-year change

Total sales of the Materials business—consisting of the Metals, Electronics, and Chemicals
segments—amounted to ¥126,804 million, an increase of ¥8,640 million year on year, andoperating profit was ¥2,309 million, a decrease of ¥40 million.

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Furukawa Co., Ltd. (5715)

Real Estate(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Year-on-year change

2,115

2,056

(58)

743

835

92

Sales
Operating profit

Sales in the Real Estate business amounted to ¥2,056 million, a decrease of ¥58 million, andoperating profit was ¥835 million, an increase of ¥92 million. Revenue from the Muromachi
Furukawa Mitsui Building (commercial name: COREDO Muromachi 2), our main facility,
increased thanks to the lifting of behavioral restrictions and the elimination of partial exemptions
for rent payments given to commercial tenants, although the commercial facility market did notrecover to pre-COVID-19 levels. On the other hand, overall rental revenues declined mainly due toa decrease in business office rent revenues.
Others(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

1,879

3,671

1,791

17

(133)

(150)

Sales
Operating profit

Year-on-year changeThis segment covers metal powder, casting, transportation, and other businesses. We posted sales of¥3,671 million, an increase of ¥1,791 million year on year, and an operating loss of ¥133 million,
compared with operating profit of ¥17 million in the previous fiscal year.
(iii) Outlook for the next fiscal year
For the fiscal year ending March 31, 2024, we forecast consolidated net sales of ¥184,500 million,a decrease of ¥29,690 million year on year, and operating profit of ¥9,200 million, an increase of¥168 million. Our forecasts by business segment are described below.
In the Industrial Machinery segment, we forecast an increase in sales underpinned by higher salesof pumps and material machinery to meet replacement demand for aging facilities, as well as
higher sales of bridge structures. Despite the forecast increase in sales, we expect segment
operating profit to remain mostly unchanged overall due to a decrease in sales of environmental
products, which are relatively profitable.
In the Rock Drill Machinery segment, we expect a decline in sales related to tunnel drill jumbos
due mainly to delays in the construction of the Linear Chuo Shinkansen. However, we look forward
to increased sales in North America, where we are developing the market for large machinery, andin Southeast Asia, where orders for hydraulic crawler drills have been strong. While we forecast
overall segment sales to increase slightly, we expect segment operating profit to remain mostly
unchanged compared with the fiscal year under review, when the weak yen had a positive impact
on revenue.
In the UNIC Machinery segment, we anticipate a significant increase in sales in Japan, where ourbusiness is now recovering from truck production delays and cuts, which previously affected craneinstallations. For the overall segment, we forecast increases in both sales and operating profit.
For the Metals segment, our projections are based on an assumed copper price of US$8,000/ton andan exchange rate of ¥135/US$1. We forecast a year-on-year decline in segment sales, due mainly toa decrease in sales volume of electrolytic copper stemming from the termination of our copper
smelting contract with Onahama Smelting and Refining Co., Ltd. Despite an expected
improvement in the profit/loss position of our entrusted business, we forecast a decline in segment
operating profit due to the absence of benefits from copper price margin profit.
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Furukawa Co., Ltd. (5715)

In the Electronics segment, we do not expect demand for high-purity metallic arsenic to recoveruntil the second half of the year or later due to the sluggish semiconductor market. Nevertheless,
we look forward to increased sales of aluminium nitride ceramics, which will benefit from capital
investments aimed at boosting production capacity, as well as higher sales of coils on the back of arecovering automobile market. Overall, for the segment we forecast an increase in sales but adecrease in operating profit due to soaring electricity and raw material prices.
In the Chemicals segment, we forecast growth in sales due partly to higher sales of cupric oxide,
which is attracting strong demand for use in module substrates for cloud servers. We also project anincrease in segment operating profit.
In the Real Estate business, we expect a decrease in revenue from Muromachi Furukawa Mitsui
Building (commercial name: COREDO Muromachi 2), our main facility, due to a decline in floor
space occupied by office tenants and lower unit rent prices. Accordingly, we forecast declines inboth segment sales and segment operating profit.
As a result, we forecast ordinary profit of ¥9,200 million, a decrease of ¥148 million from the fiscal
year under review (when we benefited from foreign exchange gains and other factors), and profit
attributable to owners of parent of ¥6,000 million, a decrease of ¥211 million.
(2) Financial position(i) Assets, liabilities, and net assets(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Total assets

229,727

232,745

3,017

Liabilities

129,652

126,695(2,957)Year-on-year change(Interest-bearing debt)

65,671

62,848(2,822)

Net assets

100,075

106,050

5,975

42.3

44.2

1.9

Equity-to-asset ratio(%)

As of March 31, 2023, total assets amounted to ¥232,745 million, an increase of ¥3,017 million
from a year earlier. This was mainly due to an increase in notes and accounts receivable–trade andcontract assets, which contrasted with declines in cash and deposits and raw materials and supplies,
as well as a decrease in investment securities due mainly to the sale of such securities. Interestbearing debt (borrowings) totaled ¥62,848 million, a decrease of ¥2,822 million. Total liabilities at
fiscal year-end amounted to ¥126,695 million, a decrease of ¥2,957 million. This mainly reflected
decreases in notes and accounts payable–trade and accounts payable–other. Net assets totaled¥106,050 million, an increase of ¥5,975 million, and the equity-to-asset ratio was 44.2%, up 1.9
percentage points.
(ii) Cash flows(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Year-on-year change

Cash flows from operating activities

8,768

6,148

(2,620)Cash flows from investing activities(5,857)(1,617)

4,239

Cash flows from financing activities(6,568)(5,934)

633

Cash and cash equivalents

14,46813,606(862)

Net cash provided by operating activities amounted to ¥6,148 million, mainly reflecting profit
before income taxes. Net cash used in investing activities totaled ¥1,617 million, mainly due to thepurchase of property, plant and equipment. Net cash used in financing activities was ¥5,934
million, mainly due to repayments of borrowings and dividends paid. As a result, cash and cash
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Furukawa Co., Ltd. (5715)

equivalents at end of period amounted to ¥13,606 million, a decrease of ¥862 million from a year
earlier.
(iii) Trends in cash flow indicators
Fiscal year ended Fiscal year ended Fiscal year ended Fiscal year ended
March 31, 2020
March 31, 2021
March 31, 2022
March 31, 2023
Equity-to-asset ratio
Market value equity ratio

(%)

36.0

42.0

42.3

44.2

(%)

19.8

23.9

21.8

20.9

Debt repayment ratio(Years)

8.4

11.5

7.5

10.2

Interest coverage ratio(Times)

16.4

13.1

20.4

12.4

Notes: Equity-to-asset ratio: equity / total assets
Market value equity ratio: market capitalization / total assets
Debt repayment ratio: interest-bearing debt / operating cash flow
Interest coverage ratio: operating cash flow / interest payment
1) All indicators are calculated using consolidated-based financial figures.
2) Market capitalization is calculated by multiplying the closing share price at the end of the period by the
total number of issued shares at the end of the period (excluding treasury shares).
3) Operating cash flow represents cash flows from operating activities in the consolidated statement of cash
flows.
4) Interest-bearing debt represents the liabilities (borrowings) in the consolidated balance sheet on whichinterest is paid.
5) Interest payment represents interest paid in the consolidated statement of cash flows.

(3) Basic policy on distribution of profits and dividends for the fiscal year ended March 31, 2023 andthe fiscal year ending March 31, 2024
The Company provides stable and continuous returns to shareholders while placing priority on
investments to ensure sustainable growth and increased corporate value over the medium to long term.
(i)

Policy on dividends
For dividends, we look to provide increased dividends and interim dividends and as a general ruletarget annual dividends per share of ¥50 or more and ratio of total shareholder return on equity on
a consolidated basis of 3% or more.

(ii) Internal reserves
Placing emphasis on internal reserves essential for securing revenue, we approach to investment
to focus on profitability while considering the risks and cost of capital accompanying suchinvestment.
(iii) Policy on purchase and retirement of treasury shares
We look to purchase and retire treasury shares while considering share price trends, capitalefficiency, cash flows, etc. We target a purchase of treasury shares per fiscal year of
approximately ¥1.0 billion.
For the fiscal year ended March 31, 2023, we plan to pay year-end dividends of ¥50.00 per share.
For the fiscal year ending March 31, 2024, we forecast no dividends in the second quarter and year-end
dividends of ¥50.00 per share.

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Furukawa Co., Ltd. (5715)

2. Basic Policy Regarding Selection of Accounting Standards
For the time being, the Group intends to use Japanese Generally Accepted Accounting Principles(Japanese GAAP) to prepare its consolidated financial statements in order to facilitate comparison withother financial periods and other companies.
As for the application of International Financial Accounting Standards (IFRS), the Group plans toappropriately respond after considering the circumstances in Japan and overseas.

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Furukawa Co., Ltd. (5715)

3. Consolidated Financial Statements and Significant Notes Thereto(1) Consolidated balance sheet(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsMerchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-9-

As of March 31, 2023

14,46913,60628,34435,502

17,205
10,813
20,8184,635(48)
96,23818,705
12,213
15,5844,318(47)
99,882

24,051
8,789
54,170
429
517
3,018
90,976376

23,435
9,384
53,910
463
900
2,888
90,981317

35,860
4,495
351
403
1,746
(720)
42,136
133,489229,727

34,711
4,573
749
351
1,947
(769)
41,563
132,862
232,745

Furukawa Co., Ltd. (5715)(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Lease liabilities
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for loss on construction contracts
Provision for environmental measures
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Retirement benefit liability
Provision for environmental measures
Other provisions
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 10 -

As of March 31, 2023

15,916
9,381
13,504
188
13,310
1,491
138
–
3
5,924
59,85914,397
9,244
16,607186
12,806
1,711
137
6
58
7,954
63,111

52,166302
10,501
1,399
2,543
58
16
239
2,565
69,793
129,652

46,240387
10,141
1,367
2,481
–
97
228
2,638
63,583
126,695

28,2082
54,557(2,197)80,57028,2082
58,847(3,086)
83,971

11,832
(292)
2,602
35
2,506
16,6832,821
100,075
229,727

12,320
(77)
2,582
1,564
2,584
18,974
3,103
106,050
232,745

Furukawa Co., Ltd. (5715)(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
March 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Freight and incidental costs
Salaries, allowances and bonuses
Provision for bonuses
Provision for retirement benefits
Provision of allowance for doubtful accounts
Research and development expenses
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodAdministrative expenses of inactive mountain
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on bargain purchase
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Loss on liquidation of subsidiaries
Demolition expenses of a rental building
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 11 -

Fiscal year ended
March 31, 2023

199,097
172,995
26,101

214,190
185,575
28,615

2,465
7,557
108
629
16
1,053
6,535
18,366
7,734

3,005
7,910
78
525
10
1,055
6,998
19,583
9,031

752

847

370

–

677
1,244
3,044

1,462
836
3,146

427

501

–

860

812
543
1,782
8,996

814
654
2,829
9,348

76
92
833
111
1,113

47
362
–
0
410

157
11
–
668
135
972
9,137
2,715
(264)
2,450
6,686
208
6,477

302
133
324
470
19
1,252
8,506
2,811
(762)
2,049
6,457
245
6,211

Furukawa Co., Ltd. (5715)

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 12 -

Fiscal year ended
March 31, 2023

6,686

6,457

527
(483)
723
547

491
106
1,413
77

20

282

1,335
8,021

2,373
8,830

7,771

8,522

250

308

Furukawa Co., Ltd. (5715)(3) Consolidated statement of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

28,208Retained earnings
2

Total shareholders’equityTreasury shares

50,025(1,862)

76,373

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equity(1,953)(1,953)

6,477

6,477
(334)

(334)

7

Total changes during period
Balance at end of period

7

–

–

4,531

(334)

4,196

28,2082

54,557(2,197)80,570

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

11,303

351

2,609

(826)

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

Total net
assets

1,959

15,3962,594

94,364

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equity(1,953)
6,477
(334)
7
528

(644)

(7)

862

547

1,286

227

1,513

Total changes during period

528

(644)

(7)

862

547

1,286

227

5,710

Balance at end of period

11,832

(292)

2,602

35

2,506

16,6832,821

100,075- 13 -

Furukawa Co., Ltd. (5715)

Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCapital surplus

28,208Retained earnings
2

Total shareholders’equityTreasury shares

54,557(2,197)80,570Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equity(1,941)(1,941)

6,211

6,211
(888)

(888)

19

Total changes during period
Balance at end of period

19

–

–

4,290

(888)

3,401

28,2082

58,847(3,086)

83,971

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

11,832

(292)

2,602

35

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

Total net
assets

2,506

16,6832,821

100,075

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equity(1,941)
6,211
(888)
19
487

215

(19)

1,529

77

2,291

282

2,573

Total changes during period

487

215

(19)

1,529

77

2,291

282

5,975

Balance at end of period

12,320

(77)

2,582

1,564

2,584

18,974

3,103

106,050- 14 -

Furukawa Co., Ltd. (5715)(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on sale of property, plant and equipment
Loss (gain) on sale of investment securities
Share of loss (profit) of entities accounted for using
equity method
Gain on bargain purchase
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Other, net
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant andequipment
Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Proceeds from a partial refund of consideration for
acquisition from the seller by adjusting theconsideration of shares of subsidiaries
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Repayments of finance lease liabilities
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 15 -

Fiscal year ended
March 31, 2023

9,137
4,003
81
(92)

8,506
4,114
255
(362)

(370)

860

(833)
433
(878)
427
345
(10,328)
5,955
3,700
(877)
10,703885(429)(2,484)
94
8,768

–
226
(1,110)501(6,798)3,219(2,143)(1,119)
2,743
8,892
1,073
(494)
(3,400)76
6,148(5,507)91(3,361)
239

(123)

(261)

107

1,380

(352)

–

–

420

(71)
(5,857)(34)(1,617)

15,957(16,062)220(4,140)(232)(334)(1,953)(22)(6,568)57,408(58,300)
3,200(5,176)(208)(888)(1,942)(25)(5,934)377

541(3,279)17,748
14,468(862)
14,46813,606

Furukawa Co., Ltd. (5715)(5) Notes to consolidated financial statements
Notes on going concern assumptions
Not applicable.
Changes in accounting policies
Not applicable.
Segment information[Segment information]
1. Overview of reportable segments
The reportable segments of the Group are components of the Group for which discrete financial
information is available and regularly reviewed by the Board of Directors to make decisions
about the allocation of managerial resources and to assess their performance.
The Group is mainly engaged in the manufacturing and sales of machinery, copper smelting on
consignment and sales, and the manufacturing and sales of electronics and chemicals in Japanand overseas.
In the Group, under the operating holding company structure, each core operating company
establishes comprehensive strategies and conducts business activities in Japan and overseas forthe products it handles, and the Company manages and monitors each core operating company.
As such, the Group is composed mainly of segments structured around products based on its
core operating companies. There are seven reporting segments: “Industrial Machinery,” “RockDrill Machinery,” “UNIC Machinery,” “Metals,” “Electronics,” “Chemicals,” and “RealEstate.”The Industrial Machinery segment manufactures, sells, and services pumps, crushers, grinding
mills, classifiers, separators, conveyor belts, environmental preservation machines, recycling
plants, steel structures, bridges, and other industrial machinery, and concludes various
construction contracts. The Rock Drill Machinery segment manufactures and sells rock drills
such as hydraulic breakers, hydraulic crushers, blast hole drills (pneumatic and hydrauliccrawler drills, down-the-hole-drills, attachment drills, etc.), and tunnel and mining drill jumbos(tunnel drill jumbos, concrete sprayers, drill jumbos used in mines, etc.). The UNIC Machinery
segment manufactures and sells UNIC cranes, mini crawler cranes, ocean cranes, and UNIC
carriers. After purchasing copper concentrates from overseas, the Metals segment manufacturesand sells electrolytic copper, electrolytic gold, electrolytic silver, and sulfuric acid which are
smelted on consignment by joint smelting companies. This segment also digs and sells
limestone. The Electronics segment manufactures and sells high-purity metallic arsenic, crystal
products, cores and coils, aluminium nitride ceramics, and optical components. The Chemicals
segment manufactures and sells sulfuric acid, polyferric sulfate solutions, sulfuric acid bands,
cuprous oxide, and cupric oxide, and sells titanium oxide. The Real Estate segment is engaged
in the leasing and transaction of real estate.
2. Method for calculating amounts of net sales, profit or loss, assets, and other items by reportablesegment
The accounting method for the operating segments that are reportable is the same as describedin “Significant Matters as Basis for Preparing Consolidated Financial Statements” (in Japaneseonly).
The profit stated for the reportable segments is a figure based on operating profit. Intersegment
revenue or transfers are based on actual market price.

- 16 -

Furukawa Co., Ltd. (5715)

3. Information relating to the amounts of net sales, profit or loss, assets, and other items byreportable segment
Fiscal year ended March 31, 2022
(Millions of yen)
Reportable segment

Net sales
Net sales to externalcustomers
Intersegment net sales ortransfers
Total

Industrial
Machinery

Rock Drill
Machinery

UNIC
Machinery

17,72330,91028,305

2,867

2

MetalsElectronics

Chemicals

102,995

7,271

7,896

100

228

0

55
7,951

20,59030,91328,405103,223

7,272

Segment profit (loss)

1,396

1,117

2,165

940

666

743

Segment assets

23,862

36,081

30,25935,6497,857

16,949

466
–

901
–

1,116
7

179
–

298
–

237
–

–

–

129

3,399

231

–

1,703

247

718

325

265

105

Eliminations/
corporate(Note 2)

Amountrecorded in the
consolidated
statement ofincome(Note 3)

Other items
Depreciation
Amortization of goodwill
Investments in entities
accounted for using equity
methodIncrease in property, plantand equipment and intangible
assetsReportable segment

Real Estate

Net sales
Net sales to externalcustomers
Intersegment net sales ortransfers
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
Amortization of goodwill
Investments in entities
accounted for using equity
methodIncrease in property, plantand equipment and intangible
assetsOthers(Note 1)

Total

Total

2,115

197,217

1,879

199,097–

199,097

13

3,268

1,623

4,891

(4,891)–

2,128

200,486

3,502

203,989(4,891)

199,097

743

7,772

17

7,789

(54)

7,734

26,660177,3214,434

181,756

47,971

229,727

419
–

3,619
7

92
–

3,712
7

47
–

3,759
7

–

3,760

160

3,920

–

3,920

595

3,961

45

4,006

772

4,778

Notes: 1. The “Others” category refers to business segments not included in the reportable segments, and includes themetal powders business, transportation business, and other businesses.
2. Eliminations/corporate are as follows:(1) Segment profit (loss) adjustment of ¥(54) million includes eliminations of intersegment transactions of ¥47
million and company-wide expenses not allocated to each reportable segment of ¥(102) million. Companywide expenses are mainly expenses related to deserted metal mine assets and deserted coal mine assets that do
not belong to the reportable segments.
(2) Segment assets adjustment is ¥47,971 million, composed mainly of surplus working capital (cash and deposits)
and long-term investment funds (investment securities).
3. Segment profit (loss) is adjusted to operating profit in the consolidated statement of income.

- 17 -

Furukawa Co., Ltd. (5715)

Fiscal year ended March 31, 2023
(Millions of yen)
Reportable segment

Net sales
Net sales to externalcustomers
Intersegment net sales ortransfers
Total

Industrial
Machinery

Rock Drill
Machinery

UNIC
Machinery

17,94335,752

27,961

2,892

3

MetalsElectronics

Chemicals

111,424

6,926

8,454

280

228

–

55

20,83635,75628,242

111,652

6,926

8,509

Segment profit (loss)

1,515

3,030

1,547

1,276

500

532

Segment assets

26,562

38,79531,65933,533

8,861

17,171

507
–

916
–

1,178
8

160
–

321
–

238
–

–

–

137

2,826

204

–

912

708

504

208

1,125

237

Eliminations/
corporate(Note 2)

Amountrecorded in the
consolidated
statement ofincome(Note 3)

Other items
Depreciation
Amortization of goodwill
Investments in entities
accounted for using equity
methodIncrease in property, plantand equipment and intangible
assetsReportable segment

Real Estate

Net sales
Net sales to externalcustomers
Intersegment net sales ortransfers
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
Amortization of goodwill
Investments in entities
accounted for using equity
methodIncrease in property, plantand equipment and intangible
assetsOthers(Note 1)

Total

Total

2,056

210,519

3,671

214,190–

214,190

11

3,472

1,805

5,278

(5,278)–2,068

213,991

5,476

219,468(5,278)214,190

835

9,238

(133)

9,104

(73)

9,031

26,642

183,227

5,269

188,497

44,248

232,745

390
–

3,712
8

132
–

3,844
8

42
–

3,887
8

–

3,168

175

3,343

–

3,343

3

3,701

204

3,906

281

4,187

Notes: 1. The “Others” category refers to business segments not included in the reportable segments, and includes themetal powders business, casting business, transportation business, and other businesses.
2. Eliminations/corporate are as follows:(1) Segment profit (loss) adjustment of ¥(73) million includes eliminations of intersegment transactions of ¥37
million and company-wide expenses not allocated to each reportable segment of ¥(110) million. Companywide expenses are mainly expenses related to deserted metal mine assets and deserted coal mine assets that do
not belong to the reportable segments.
(2) Segment assets adjustment is ¥44,248 million, composed mainly of surplus working capital (cash and deposits)
and long-term investment funds (investment securities).
3. Segment profit (loss) is adjusted to operating profit in the consolidated statement of income.

- 18 -

Furukawa Co., Ltd. (5715)

Per share information(Yen)
Fiscal year ended March 31,
2022
Net assets per share
Basic earnings per share

Fiscal year ended March 31,
2023

2,505.01

2,700.87

165.87161.97

Notes: 1. The amount of diluted earnings per share is not provided because there are no potential shares.
2. The bases for calculating basic earnings per share are as follows:
Fiscal year ended March 31,
2022

Fiscal year ended March 31,
2023

Basic earnings per share
Profit attributable to owners of parent (Millions of yen)

6,477

6,211

Profit (loss) not attributable to commonshareholders(Millions of yen)––

Profit attributable to owners of parent pertaining tocommon shares(Millions of yen)

6,477

6,211

Average number of outstanding common shares during
the period(Thousands of shares)

39,05438,351

Material subsequent events
Not applicable.

- 19 -

Furukawa Co., Ltd. (5715)

Supplementary Material on Financial Results
for the Fiscal Year Ended March 31, 2023
May 12, 2023
Furukawa Co., Ltd.
Net sales(Yen amounts are rounded down to millions.)
Fiscal year ending March 31, 2024
Fiscal year ended
March 31, 2023
Machinery business

81,658Year-on-year change

Forecast

Year-on-yearchange4,719

87,0005,341

Industrial Machinery segment

17,943220

18,500556

Rock Drill Machinery segment
UNIC Machinery segment

35,752
27,961

4,841
(343)

36,00032,500247
4,538

126,804

8,640

91,600(35,204)

Metals segment
Electronics segment

111,424
6,926

8,429
(345)

74,8007,700(36,624)
773

Materials business

Chemicals segment

8,454

557

9,100

645

Real Estate segment

2,056

(58)

1,700

(356)

Others segment

3,671

1,791

4,200

528

214,190

15,093

184,500(29,690)

Total

Operating profit
Fiscal year ending March 31, 2024
Fiscal year ended
March 31, 2023
Machinery business

6,093

Year-on-year change

Forecast

Year-on-yearchange

1,414

7,400

1,306

Industrial Machinery segment

1,515

118

1,500

(15)

Rock Drill Machinery segment
UNIC Machinery segment

3,030
1,547

1,913
(617)

3,100
2,800

69
1,252

Materials business

2,309

(40)

1,600

(709)

Metals segment
Electronics segment

1,276
500

336
(165)

500
400

(776)
(100)

Chemicals segment

532

(210)

700

167

Real Estate segment

835

92

400

(435)

Others segment

(133)

(150)

(150)

(16)

(Subtotal)

9,104

1,315

9,250

145

Eliminations/corporate

(73)

(18)

(50)

23

9,031

1,297

9,200

168

Total

Exchange rate/Copper priceFiscal year ending March 31, 2024
Fiscal year ended
March 31, 2023

Year-on-year change

Forecast

Year-on-yearchangeExchange rate

Yen/$

135.5

23.1

135.0

(0.5)

Copper price

$/mt

8,551

(1,140)

8,000

(551)

- 20 -

Furukawa Co., Ltd. (5715)* Reference Information (the below values are reference values)
1. Industrial Machinery segment order balance
The Industrial Machinery segment mainly provides built-to-order manufacturing, and the order balance
as of the end of the fiscal year under review is as follows.
As ofMarch 31, 2023
Order backlog

Year-on-year change¥14.2 billion¥4.8 billion

2. Profit or loss from metal price fluctuations in the Metals segment
Fiscal year ended
March 31, 2023

Year-on-year change

Operating profit¥1.27 billion¥0.33 billion

Of which was due to pricefluctuations¥1.18 billion¥(0.33) billion[¥0.07 billion][¥1.02 billion][¥(1.10) billion][¥0.75 billion]

CopperGold- 21 -